Press release from 9th session of Privatisation and Capital Projects Council

Podgorica, Montenegro (27 December 2017) -- Ninth session of the Privatisation and Capital Projects Council, chaired by President of the Council and Prime Minister Duško Marković, reviewed the report on realised investments based on the Decision on long-term lease of the Luštica Peninsula in the municipality of Herceg Novi for the period from 1 December 2016 to 15 December 2017, which was submitted by the Ministry of Sustainable Development and Tourism and the Secretariat for Development Projects.

The Report submitted in line with the obligation of the Secretariat for Development Projects to report annually the Council on the project reads that the Council at the sessions held on 13 and 14 December 2017 proposed to the Government of Montenegro to determine the second annex to the Agreement, which the Government did at its 54th session held on 14 December 2017, and a week later, the annex was also approved by the Committee on Economy, Finance and the Budget of the Parliament of Montenegro.

The Council reviewed the Information on the status of realisation of the investment agreement for the sale of 74.9749% of the share capital of the "Jadran Perast" AD company and proposed to the Government to approve the Information.

The Information states that the investor "Imobilia" doo has received a positive opinion by the Directorate for the Protection of Cultural Property and the Chief State Architect for the preliminary decision and that it has submitted requests for all the necessary consents. The investor stated that the works on the reconstruction of the Smekja palace are in progress, as well as the works on the reconstruction of other buildings for which contracts were signed.

Today’s session also discussed the Report on realised investment and other activities under the Agreement on long-term lease of the Lastavica Island with the Mamula fortress in Herceg Novi for 2017.

The Report states that the lessee paid on 28 June 2017 a fixed rent for the first year of lease amounting to EUR 47.772 and that according to the data submitted by the investor, 543,000 euros were spent on the implementation of the project, including, given that the project is still in the planning phase, the main project development, procurement of equipment, preparatory works and salaries for employees, as well as the engagement of domestic and foreign consultants. The Council was informed that preparatory works of a larger scale have already started.

The Council also discussed the Report on the Control of Compliance with the Contract on Sale of 50.7532% of the capital of the Chemical Industry POLIEX AD Berane, including the positive Auditor's report on doing business.

The session considered the oral information of the Council's member Srđan Keković on the criminal complaint submitted by the Trade Union of the "Port of Adria" Bar against members of the previous convocation of the Privatisation and Capital Projects Council.

The Privatisation and Capital Projects Council got acquainted with the criminal complaint, assessing that taking a position on the issue is not within the competence of the Council.

PUBLIC RELATIONS SERVICE OF THE GOVERNMENT OF MONTENEGRO